The head-long congressional and presidential rush to get a bail-out bill passed and signed has borne fruit, but Wall Street failed Friday to go along.
High unemployment data, and the realization that the bureaucracy could take months to actually implement the bail-out bill, trumped Bush and Congress once again--and the Dow Jones on Friday fell like a rock.
The commodities markets, including cattle futures, did recover modestly, unlike the Dow. But it was far from a triumphant turn-around. Sort of a whimper that they had overdone things Thursday.
The real problem was that many people have sold cattle and crops based on Black Thursday pricing. The mild Friday recovery was too little, too late for producers who sell a perishable product that has to go to market when its ready. Market timing might work on the stock market, but not for live animals on the scene at the sale barn or crops ripening by the hour.
This great media-spun panacea has so far failed to catch fire. Wet logs, lack of lighter fluid.
Maybe Monday will bring some recovery. Farmers and ranchers are eagerly waiting.
No comments:
Post a Comment